Credit cards tailored for students offer a unique opportunity to build financial literacy and establish credit history early in life. The best student credit cards combine manageable terms, low fees, and perks like cashback or rewards, making them a smart choice for young adults navigating their financial journey.
Here’s a roundup of the top five student credit cards available in the U.S., highlighting their features, benefits, and why they’re great options for students.
1. Discover it® Student Cash Back
Why It’s Great: Rewards for everyday spending and excellent customer service make this card a standout choice.
- Key Features:
- Cashback Rewards: 5% cashback on rotating categories like groceries, gas, and restaurants (on up to $1,500 in purchases per quarter, after activation), and 1% on all other purchases.
- Introductory Offer: Unlimited Cashback Match at the end of your first year.
- No Annual Fee: Helps students save on extra costs.
- Credit Monitoring: Free access to your FICO® Score.
- Best For: Students who want to earn cashback while building credit.
2. Chase Freedom® Student Credit Card
Why It’s Great: Straightforward rewards and a focus on building credit responsibly.
- Key Features:
- Flat Rewards: Earn 1% cashback on all purchases with no cap.
- Welcome Bonus: $50 bonus after your first purchase within the first three months.
- Annual Fee: $0, making it cost-effective for students.
- Credit Limit Increase: Eligible for a credit line review after five on-time payments.
- Best For: Students looking for a simple, hassle-free rewards structure.
3. Capital One SavorOne Student Cash Rewards Credit Card
Why It’s Great: Ideal for students who spend on dining and entertainment.
- Key Features:
- Cashback Rewards: 3% cashback on dining, entertainment, and popular streaming services; 1% on all other purchases.
- No Foreign Transaction Fees: Perfect for students studying abroad.
- Annual Fee: None, helping students keep costs low.
- Credit-Building Tools: Access to CreditWise for free credit monitoring.
- Best For: Students who enjoy dining out and entertainment activities.
4. Bank of America® Unlimited Cash Rewards for Students
Why It’s Great: Unlimited cashback and easy redemption options.
- Key Features:
- Flat Cashback Rate: 1.5% unlimited cashback on all purchases.
- Sign-Up Bonus: $200 cash rewards after spending $1,000 in the first 90 days.
- Preferred Rewards Program: Earn up to 25%–75% more cashback if you’re a Bank of America customer.
- No Annual Fee: Ensures affordability.
- Best For: Students seeking a consistent cashback rate on all spending.
5. Journey® Student Rewards from Capital One
Why It’s Great: Encourages responsible spending and timely payments.
- Key Features:
- Rewards: Earn 1% cashback on all purchases, with a boost to 1.25% when you pay on time.
- Credit Building: Automatic consideration for a higher credit line after six months.
- No Foreign Transaction Fees: Great for international students or travelers.
- Annual Fee: $0, making it accessible to all students.
- Best For: Students who want to establish good financial habits and improve their credit score.
Why Choose a Student Credit Card?
- Build Credit Early: Establishing a credit history during college can make it easier to qualify for loans, apartments, or mortgages in the future.
- Learn Financial Responsibility: Using a credit card teaches budgeting and the importance of on-time payments.
- Earn Rewards: Many student credit cards offer cashback or other perks, providing value for everyday purchases.
- Access to Tools: Most student cards come with credit monitoring and financial education resources.
Tips for Using a Student Credit Card Responsibly
- Pay On Time: Late payments can hurt your credit score and incur fees.
- Keep Balances Low: Avoid carrying high balances to maintain a low credit utilization ratio.
- Understand Terms: Read the fine print to know your interest rates and fees.
- Use Rewards Wisely: Take advantage of cashback or other perks, but avoid overspending to earn them.
Conclusion
Student credit cards are an excellent way to build financial literacy and establish a strong credit history. Options like the Discover it® Student Cash Back and the Chase Freedom® Student Credit Card offer a balance of rewards, affordability, and credit-building tools tailored to young adults.
When choosing a card, consider your spending habits, financial goals, and the features that matter most to you. With the right card and responsible usage, you can set yourself up for a lifetime of financial success.